Tasausmenetelmä

Tasausmenetelmä, known in English as the "balancing method" or "leveling method," is a term used in Finnish finance and accounting to describe a specific approach to managing and accounting for accrued expenses and revenues. It is a method designed to smooth out the recognition of costs or income that may fluctuate significantly or occur irregularly over a period.

The core principle of tasausmenetelmä involves accumulating expenses or revenues as they arise and then gradually recognizing them in the financial statements over a defined period. This is particularly useful when a significant expense is incurred, but its benefit extends over multiple accounting periods. Instead of recognizing the entire expense in the period it was incurred, a portion is allocated to each subsequent period, creating a more even impact on profitability. Similarly, revenues that are earned over time but received upfront can be deferred and recognized as they are earned.

This method aims to provide a more accurate reflection of an entity's financial performance by matching costs with the revenues they help generate, adhering to the matching principle of accounting. It helps avoid artificial spikes or dips in reported profits and losses that might arise from the timing of cash flows. Tasausmenetelmä is often applied to items such as pre-paid expenses, deferred revenue, or provisions for future costs. The specific rules and acceptable applications of tasausmenetelmä are typically governed by Finnish accounting standards and tax legislation.